Survey Evidence on Producer Use and Costs of Genetically Modified Seed

National survey data collected for 1997 in USDA’s Agricultural Resource Management Study was used to derive implications and pose hypotheses about the impact on pesticide use, production practices, and producer costs of using genetically modified (GM) seed in soybean and cotton production. Results of the analysis suggest concurrence with scientific and industry claims about the environmental qualities of these technologies. Herbicide treatments on herbicide-resistant acreage were, on average, less than on other acreage, with more of the treatments in post-emergent applications. The mean value of insecticide treatments for target pests on Bt cotton acreage was reduced relative to other acreage with these pest problems. However, mean costs and mean yields on acreage planted in GM seed relative to other acreage did not indicate a cost advantage, or disadvantage, for the GM seed technologies. Additional research is needed to determine whether these suggested relationships hold when critical variables within aggregated groups are tested for their independent influence. [Econolit: Q000, O330] © 2000 John Wiley & Sons, Inc. Soybeans and cotton are leading users of agricultural pesticides at a substantial cost to US farmers. Average pesticide costs, at about $28 per acre, comprise about 35% of the variable cost of soybean production. Cotton costs average about $57 per acre, but are more than $100 per acre in areas with severe insect and/or weed pressure (USDA, ERS, 1999). With concerns in production agriculture focused on low commodity returns and the environmental effects of pesticide use, genetically modified (GM) seed may be an alternative that can lower producer costs and reduce total pesticide use. Rapid adoption of GM seed suggests that these technologies are perceived to be more profitable than traditional methods. This study is the first to present national survey evidence about the impact on pesticide use, crop yields, and the costs associated with using GM seed in soybean and cotton production.